Canadian regulators are delaying the implementation of trade reporting requirements for over-the-counter (OTC) derivatives transactions, as there isn’t yet a trade repository in position to do the job in Canada.
The Canadian Securities Administrators (CSA) announced today that they are extending the date for the OTC derivatives trade reporting until October 31 for clearing agencies and dealers, and until June 30, 2015 for all other OTC derivatives market participants. The requirements were scheduled to take effect in July for dealers and Sept. 30 for other market players.
However, regulators indicate that the infrastructure to allow trade reporting isn’t in place yet. “At present, no trade repository that can accept all OTC derivative asset classes has completed its application to be recognized or designated within the required timeframe for the commencement of trade reporting obligations in Québec, Manitoba and Ontario,” the CSA says.
The extension will give trade repositories time to accept market participants onto their systems and develop the reporting infrastructure necessary to comply with provincial trade reporting rules, the CSA notes.
To facilitate the extension, regulators’ staff in Ontario, Québec, and Manitoba will be recommending amendments to the trade reporting rule.
The trade reporting rule aims to improve transparency and regulatory oversight in the derivatives market. “Derivatives data is essential for effective regulatory oversight of the derivatives market, including the ability to identify and address systemic risk and the risk of market abuse,” the rule notes.